Public sector lender Punjab & Sind Bank on Saturday said its net profit rose 27 per cent to Rs 278 crore in the second quarter of FY23 on the back of reduction in bad loans.
The bank had reported a profit of Rs 218 crore in the year-ago period.
Total income of the bank during the July-September quarter of FY23 rose to Rs 2,120.17 crore against Rs 1,974.78 crore in the corresponding period of FY22, Punjab & Sind Bank said in a regulatory filing.
The bank’s gross non-performing assets (NPAs) declined to 9.67 per cent of the gross advances at the end of September 2022 from 14.54 per cent during the same period a year ago.
In value terms, the gross NPAs (bad loans) of the Delhi-headquartered bank stood at Rs 7,128.45 crore by the end of Q2FY23, as against Rs 9,822.80 crore in Q2FY22.
Net NPAs also came down to 2.24 per cent from 3.81 per cent in the second quarter of previous year.
As a result, the bank’s provisions for bad loans and contingencies declined to Rs 125 crore for the quarter, from Rs 203 crore a year ago.
Of this, provisions for bad loans eased significantly to Rs 63 crore as against Rs 678 crore in the same quarter a year ago.
During the quarter, the Provision Coverage Ratio (PCR) improved further to 89.16 per cent as against 84.44 per cent in September 2021.